The Olmsted Falls school district has applied for $100 million in federal bailout funds.

The request asks for $50 million for construction purposes, which would involve hiring tradesmen from the area, and an equal amount for special education and federal unfunded mandates.

The district will continue to seek a 9.9-mill operating levy on Feb. 3.

"The economy is what it is. We will run a campaign but we have an obligation not only to draw potential revenue from local resources but from national resources of funds as well," said Superintendent Todd F. Hoadley Monday morning. "We are trying to think outside the box. We did that in working with the state in a unique way to get $7.7 million in facilities' funding. Maybe this is another unique way to help our students, our taxpayers and our district with this request."

The district last week submitted an application for $100 million to the Federal Reserve Bank of Cleveland through the Troubled Assets Relief Program Capital Purchase Program. It's part of the U.S. Department of Treasury's Emergency Economic Stabilization Act.

Half of the request would underwrite bonds to construct school buildings and employ "hundreds" local out-of-work construction and trade workers, while the rest would cover ongoing operating costs associated with unfunded federal mandates or laws involving special education services and the No Child Left Behind requirements.

"The investment in Olmsted Falls City School District is an investment in not only education but an investment in local businesses, consumers and the northeast Ohio economy as well," said Hoadley, whose district has received top state academic accolades. "The federal funding is supposed to be an economic stimulus package. We're in the middle of one construction program and designing a second. But we still have severe overcrowding. We would love to obtain some funding to put tradesmen to work to stimulate our economy and solve overcrowding in our district."

Voters rejected a 0.5-mill school income tax and a 4.9-mill property tax last month. The last operating levy the district asked of its voters, which they passed, was in 1999.

Without new money, the district, which is the community's largest employer, faces a projected $2.6 million deficit at the end of the 2009-10 school year. That grows to an $8.7 million deficit in fiscal year 2011 and $15.8 million the following year.

The district is constructing a new intermediate school and is designing plans for a 20 more classrooms at its middle school. But additions and renovations are needed at its high school, with changes also needed at Fitch Elementary School. The federal bailout request would help these building projects.

Hoadley said he has already contacted offices of U.S. Sen. Sherrod Brown and U. S. Rep. Dennis Kucinich. He spoke with Jack Dover of Brown's Washington, D.C. office about its application. Dover is an Olmsted Falls graduate who was recently inducted into the district's Hall of Fame.

"He didn't make promises. We talked more about the optimistic climate in Washington and discussions about a second stimulus package similar to the Works Progress program under FDR, which is more in line of what we are asking," said Hoadley. "He did make Senator Brown aware of our request."

Hoadley said he's doesn't have "trouble" with the federal NCLB initiatives but they must be paid by local taxpayers because they are unfunded.

"We are suffering under an unconstitutional method of funding public education here in the state and federally unfunded mandates. We have encountered a lot of out-of-pocket expenses with these programs. We hear comments about running the district like a business. I see this as an invoice for services rendered," he said. "We are trying to make sure we are in the game here for potential funds. If we can spend millions of dollars on the economy, maybe we can spend them here for our community and the children of Olmsted Falls schools."

Research has shown there is a direct link between public education and the economic development of a community.

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